Gold surges to record $3,000 as trade war escalates and dollar weakens

Gold prices soared past $3,000 per ounce for the first time, driven by rising global tensions and a weakening US dollar. Spot gold jumped 1.9% to $2,988 as investors sought safe-haven assets amid escalating trade disputes and inflation fears.

Trade war and inflation concerns
US tariffs on steel, aluminum, and European imports have intensified global trade conflicts, raising inflation risks while slowing economic growth. Investors fear stagflation, historically boosting gold’s appeal.

Compare Top Forex brokers and start trading and investing with a trusted partner

Dollar weakens, Fed rate cut expected
The US Dollar Index has dropped 5% since January, with cooling inflation increasing expectations of a Fed rate cut in June. A weaker dollar typically supports gold prices.

Central banks shift to gold
With rising US debt concerns, central banks are moving reserves from Treasuries to gold. Analysts suggest Trump’s fiscal policies are driving this shift.

Markets turn defensive
Stocks and crude oil continue to slide, with the S&P 500 down 10% from its peak. Investors are retreating from riskier assets, favoring gold as uncertainty looms.